I'm still confident that with the JORCed up lithium resources they have and the current contract price of spodumene being about US$5k/t their current market value seems to be very cheap. Whether the market sooner or later fully recognises that or not I have no idea.
Just playing with the numbers from the recent Allkem announcement using Mt Cattlin figures of 50kt of 6% spodumene at US$5k/t. Say we less say in cash costs of US$300/t then that suggests that an operation similar to Mr Cattlin could be pulling in about $290m per quarter. I don't know what a spodumene mill would cost, say another $200m. So a working operation that you can buy for $350m is able to churn out close to a $1b a year??? Sounds an attractive proposition to me.
Also most definitely not a lifestyle company - they deserve kudos for having a crack with the caesium and even more so for JORCing up their lithium - remember Essential Metals is one of only about 10 companies with a lithium MRE in WA. I fully expect they will go equally as hard at producing lithium as they did caesium.
Adamstown - yes I can see that angle but even BHP and Rio spend huge amounts of money strutting their stuff. Essential has done very well recently but hopefully they are just at the beginning of their journey and they need to keep doing all the little things that count.
Nutbag - I would never have chipped them for doing the conferences, but I accept that others may have. Especially these days where clips from conferences can be viewed anywhere around the world presenting at conferences is a powerful form of marketing. Besides up till recently there was never a reasonable probability of them being a billion dollar company. Now there is.
gamblor84 ...
ESS Price at posting:
58.0¢ Sentiment: Hold Disclosure: Held
